Retirement fund

[JuniorLion]

So how do I go about topping my OA directly? As long as it doesn't flow to my MA acct, then it's worth it to get 2.5% rate. Unfortunately for me, I didn't read about BBCW's SA shielding method until after my RA was created

Only way to top up your OA is to "repay your housing loan".

 

[star2008]

You can download the FORM HSD/VR from CPF website:

https://www.cpf.gov.sg/Assets/members/Documents/FORM_HSDVR.pdf

 

[Kirakun83]

Which? RetireReady?

Yeah. U buy yours already?

 

[Kirakun83]

I did.

ML RRP.

I placed a small lump sum on this as a safeguard just in case I burned my fingers badly, so that I wouldn't need to pick up cardboard when I am older.

Didn't opt for the monthly payment as I don't see myself needing that money to ease my monthly cash flow.

IIRC, currently the better ones are from ML and NTUC but I can't remember the exact details.

RRP + CPF SA which is under my Let's lock the door (and throw away the Key) scheme. So hopefully I can still shom-dooby-dom, dooby-dom-dom during my retirement.

It depends on your age, years to retirement, risk appetite and available funds.

Some would swear off such plan if they are still young. This is because the stock market would give much better return in the longer horizon and switch to the safer path once closer to your retirement.

Regardless of your choice, it is better to plan early. Make the time work to your advantage.

I met an old Italian couple when I was backpacking during my NS period.

That damn old man planned well that he is able to travel around the world for 2 years when I met him. Hell, he even bought the flight tickets 1 year in advance so he can save more!

When you are young, what you have is time advantage. When you are old, retired and not rushing for deadline, what you have is time too!

Hi pro utonium can I pm u?

 

[JuniorLion]

Yeah. U buy yours already?

Nope, not at all.

 

[Kirakun83]

Nope, not at all.

I see. I bought mine plan recently. But I feel that I paying too much for the plan

 

[raychoy]

No. If you repay OA, it is NOT considered (procedurally) that you paid for housing using cash.

If you withdraw from CPF, the usual rules apply. Money will be drawn out from SA first, before OA.

To counter this ,can we transfer existing SA amount to RA first before the withdrawal from OA ?

 

[JuniorLion]

To counter this ,can we transfer existing SA amount to RA first before the withdrawal from OA ?

Yes you can.

 

[Nofear40]

I see. I bought mine plan recently. But I feel that I paying too much for the plan

May I know why do you say so?
The guaranteed return rate seems higher than others

 

[BBCWatcher]

To counter this ,can we transfer existing SA amount to RA first before the withdrawal from OA ?

Yes you can.

That's really just a convenience, though. It's still mechanically equivalent to two separate transactions (SA withdrawal followed by RA deposit). However, you probably don't want to accept the convenience if you haven't hit the Full Retirement Sum. That's because you could get some tax relief if you did these transactions separately. You may be allowed to withdraw up to $5,000, for example, which (as a separate transaction, and if you haven't hit the FRS) you can then deposit in your RA, with tax relief.

You can download the FORM HSD/VR from CPF website:
https://www.cpf.gov.sg/Assets/members/Documents/FORM_HSDVR.pdf

Yes, and if you get to a CPF customer service office before 10:00 a.m. on Monday, December 31, 2018, with this completed form and a paper check, you can get your OA repayment credited within 2018. And that'll mean you'll receive 2.5% OA interest on this repaid sum starting from January 1, 2019. If you wait even one minute longer then interest will be credited starting no earlier than February 1, 2019.

So what's one month worth of interest? Well, let's suppose you're repaying $150,000 of OA funds (with accrued interest) that you used for housing. One month of interest at 2.5% is equal to $312.50, not including compounding from there. So can you hop on the bus or train early Monday morning and get to CPF when they open, in order to claim your $312.50 prize? Yes, you can -- that's worth a special trip.

 

[Kirakun83]

May I know why do you say so?
The guaranteed return rate seems higher than others

Yeah. I think I used out my 1/3 of my pay to pay the policy. Which is ard 1.7k++. I still got other insurances to pay which added up together 330. To think about it. I over do it.

 

[Nofear40]

Yeah. I think I used out my 1/3 of my pay to pay the policy. Which is ard 1.7k++. I still got other insurances to pay which added up together 330. To think about it. I over do it.

You will reap your rewards
先苦后甜

 

[AT]

AND you can also repay any OA funds (plus accrued interest) you used for housing, to go back into your OA where they'll also earn 2.5% and be available on demand, like a weirdly high yielding savings account.

Tons of potential here, especially if you have many Singapore dollars languishing in low interest bank accounts.

I was just wondering can one repay PARTIALLY OA funds (plus accrued interest) used for housing back into your OA where they'll earn 2.5% ? e.g say I used $150K can I repay say only $100K cash and not the full $150K sum?

 

[JuniorLion]

I was just wondering can one repay PARTIALLY OA funds (plus accrued interest) used for housing back into your OA where they'll earn 2.5% ? e.g say I used $150K can I repay say only $100K cash and not the full $150K sum?

Yes, you can.

 

[SKenny]

I was just wondering can one repay PARTIALLY OA funds (plus accrued interest) used for housing back into your OA where they'll earn 2.5% ? e.g say I used $150K can I repay say only $100K cash and not the full $150K sum?

Partial repayment is allowed.

 

[SKenny]

Even after RA had been created? I am trying to use CPF OA/SA as "on demand saving accounts". I am above 55.

Above 55, you can top up your RA instead to the ERS limit.

I am also using my CPF OA/SA accounts as high interest saving account guaranteed by the govt!

 

[Kirakun83]

You will reap your rewards
先苦后甜

For retirement plan I think at the old age time I gain. But the others insurance I paid for like nothing I can gain.

 

[Nofear40]

For retirement plan I think at the old age time I gain. But the others insurance I paid for like nothing I can gain.

Is for protection
Sickness is common nowadays

 

[SBC]

Make sense for SPH Invest Editor to top up $88k cash into RA next year?

I doubt so.

Is also a great mistake to surrender her old life policies.
I am also holding a few life policies without limited payment. Late 40s now.
Will not give up such policies unless I really hit into cash flow issues.

 

[Newmaxi]

Above 55, you can top up your RA instead to the ERS limit.

I am also using my CPF OA/SA accounts as high interest saving account guaranteed by the govt!

If u topup to ERS amount. U can’t withdraw right. It will be payment in the form of cpf life payout